It is depend on your requirement. Take help of some investment bank like JM Finance.
Every investor finds himself on a threshold contemplating whether to invest in stocks or mutual funds. But, it is impossible to provide a subjective answer to this question without knowing one’s requirements – financial objectives, investment tenures, risk appetite etc. So here’s a basic comparison
- You need time, dedication and knowledge about market trends to invest in the stock market, where as your mutual funds are managed by professional fund managers who pick, track, allocate fund on your behalf.
- For stock market trading you need to bear costs associated with demat accounts, which are not required for mutual funds.
- You can get a tax deduction of up-to ₹150,000 if you invest in ELSS mutual funds, whereas the profits you earn from shares come under taxable income.
- To maximise profits and minimise risks, you need a diversified portfolio, which can be done with mutual fund investments. On the other hand can be quite confusing regular tracking is needed for stocks.
Investment in stocks without prior experience or knowledge of the working of financial markets can be disastrous and easily drain away your savings. Therefore, it is advisable to invest in mutual funds if you don’t have a thorough knowledge of financial markets and want to keep your money in safe hands.